3.1.2 business objectives

Question 1

to make a profit

Answer 1

when a business aims to generate more revenue relative to business expenses.

Question 2

define business objectives

Answer 2

are the goals a business
intends to achieve.

Question 3

to increase market share

Answer 3

When a business aims to increase its
percentage
of total sales within an
industry.

Question 4

strategies a business may use to increase market share

Answer 4

producing products with new technology

increasing customer loyalty to encourage repeat sales from customers

hiring skilled employees that produce goods and services of desired quality

implementing advertising which attracts more customers and sales

offering lower prices to generate more sales.

Question 5

to meet shareholder expectations

Answer 5

relates to a shareholders that are successful in making a return on their original investment, through dividends or achieving capital gains.

Question 6

to fulfil a market need

Answer 6

To fulfil a market need
is when a business fills a
gap in the market, which
involves addressing
customer needs that
are currently unmet or
underrepresented by
other businesses in the
same industry.

Question 7

to fullfil a social need

Answer 7

To fulfil a social need
is improving society and
the environment through
business activities.

Question 8

to improve efficiency

Answer 8

relates to when a business gets the most out of their resources, aiming to maximise the use of their
time, money, effort, employees, and materials.

Question 9

to improve effectiveness

Answer 9

Effectiveness is the
extent to which a
business achieves
its stated objectives.